ETHICAL AND UNETHICAL ISSUES IN DISCIPLINES OF MANAGEMENT

ETHICAL AND UNETHICAL ISSUES IN DISCIPLINES OF MANAGEMENT

 What is the Ethics?

Ethics is a branch of philosophy which is concerned with human character and conduct. It refers to the standard of behavior of conduct which is based on moral values that guide people about what is right and wrong.

WHAT IS BUSINESS ETHICS?

In the business scenario, the organization culture set standards for the determination of the difference between good and bad behavior. We can add examples like maintaining honesty, possessing the discipline and fairness towards the company that a person is working.

 

Ethics In Finance Management:

Finance is defined as money required for start of business or support of business. It is concerned with the allocation of assets and liabilities over space and time often under conditions of risk or uncertainty. They required to upload the highest ethical standards because internal and external stakeholders depend on the transparent, timely and complete financial document to make decisions.

ETHICAL ISSUES:

• Timeliness 

Timely updating of financial records is as important as being accurate and transparent. Managers, stakeholders, investors have to get accurate data within the time so that they can use that in the process of decision making.

• Integrity

Employees, shareholders, customers, stakeholders should have trust upon the managers, managers should not allow prejudice, bias, and conflicts of interest, they should be ethical, without disclosing any personal data of the customer

• Transparency

It means explaining financial information clearly especially for the people who aren't familiar with the company's operations. Financial managers should not hide otherwise render relevant financial information impossible for ordinary shareholders to understand.

• Insider training

Refers generally to buying or selling securities, in a branch of a  fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the securities

UNETHICAL ISSUES:

• Giving false promise to the customers and stakeholders

• Taking the loan from private financial institutions at a higher rate to avoid  tax

• Not promoting sales tax, customs duty, ESI, PF, excise duty.

• Delaying payment of wages, incentives, interest to financiers, bonus to employees, etc.

• Creating fake bills of purchase to show high costs for not to pay a bonus to the employees.

 

Ethics in Human Resource Management:

Human resource means the collection of people and their characteristics at work. HR management involves both strategic and comprehensive approaches to managing people as well as workplace culture and environment.

ETHICAL ISSUES:

• Employee responsibility 

The organization have some responsibilities towards their employees, like an employee should have a duty of care, the responsibility of safety at the workplace, ensuring workers received sufficient information, instruction and training in the workplace that the work may be required to perform

• Performance appraisal

Human resource management can influence an ethical review climate by designing a performance evaluation system that stresses objectively and by training on concert procedures and ethical practices. Giving appraisals in accordance with the work done by the employees can also help to motivate them to do work with prosperity.

• Cash and incentives plans

Cash and incentive plans include the basic employee welfare like salaries, bonus, annual increment or incentive, executive perquisite, long time incentive plans, etc.

• Employee discrimination

There were several standards are imposed in most of the companies for demotivating the discrimination based on things like culture, religion, sex, etc.

• Safety and health 

Providing safety and health to the employees belongs to the company

• Privacy

Human resources manager should take care of the privacy policies of the employees works under the organization.

UNETHICAL ISSUES:

• Abusive behavior

If the head of the company is not able to resolve the issues, the complaint will be taken forward by the human resource. some of the unacceptable behavior like shouting or personal insult will happen. It should be controlled so that it doesn't affect other employees.

• Lying employee

The employee may think that one little lie won't hurt their standing with the organization, but even the smallest lie or untruth, when discovered, can diminish the regard for the employee.

• Employee theft

It means stealing, use or misuse of an employer's assets without permission. Assets like money, time,  supplies, merchandise company property, information. It can be a very serious issue for the HR managers to look after these kinds of things in the company.

• Workplace conflicts 

It can often happen in an organization due to the unfavorable decision making or due to the sort of discrimination. The HR manager should take certain measure to avoid these in an ethical way.

• Violating company internet policy

Researches say that huge amount of money is wasted on unnecessary internet surfing. Due to this, there is wastage of company's time as well as money.

Ethics In Marketing Management:

Marketing means the action of promoting and selling products or services, including market research and advertising. it comes in a wide variety of flavors based on audience, media platform and business in today's evolving and dynamic market place. ethical issues in marketing arise from the conflicts and lack of agreement on particular issues.

ETHICAL ISSUES:

Certain ethical issues which usually seen in the field of marketing are:-

• Adequate market research 

• Deceptive marketing policies 

• A proper unbiased and accurate information collection

• Grouping the market audience

• Delivery channel

→starbucks is an example for organizations showing enough ethical value in marketing.

 

                                        www.tradingvisions.org/content/starbucks-marketing-ethics

UNETHICAL ISSUES:

• Using women and drawing them as a sex symbol for adults. 

In certain marketing based advertisements showing women as a sex symbol to attract the attention of adults.

• Accuracy in advertising

Especially online marketing, they use photographs of high-quality product and sell the poor quality of goods. 

• Emotional exploitation

This problem arises every once in a while, they make a quiet exit when consumers complain about feeling manipulated.

• False brand comparison

Comparing one product to another that is really not related, in order to make one thing look more or less desirable than it really is.

• False promise

Giving false promise about the product's quality,  warranty, guarantee etc.

• Offering false claims 

Certain companies often show some offers and claims regarding their product. But when it comes into the matter they make excuses.

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"Business Ethics are important because they establish expectations and standards for acceptable behavior and values. Business that intend to grow and prosper have an obligation to act ethically as do individuals. When this type of "good faith" cannot be established everyone loses because the implied risk for everyone increases and their productivity goes down, as a result of time and resources being devoted to minimize risk in stead of maximizing gains."

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                      -------Thank You-------